Quarterly Budget Review - March 2019 1. Quarterly Budget Review Statement as at 31 March 2019 be...
Transcript of Quarterly Budget Review - March 2019 1. Quarterly Budget Review Statement as at 31 March 2019 be...
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TITLE: [FRIT-CM] Quarterly Budget Review - March 2019 SUBMITTED BY: Financial Services
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LINKAGE TO INTEGRATED PLANNING AND REPORTING FRAMEWORK:
2 Making decisions with you
2.2 Engagement
2.2.5 Financial Services - To collect and manage Council funds and provide information and advice to support sound financial decision-
making.
ROLE: Leader
SUMMARY OF REPORT:
This is the third quarter statutory budget review for this financial year and summarises the estimated expenditure and income changes to the 2018/2019 Budget. This statutory report is prepared in accordance with the Local Government (General) Regulations 2005, sections 202 and 203. Council will have a balanced budget as at 30 June 2019 in all Funds. RECOMMENDATION:
That the: 1. Quarterly Budget Review Statement as at 31 March 2019 be adopted. 2. Expenditure and income, as summarised below and detailed within the report, be
voted and adjusted in accordance with the revised total expenditure and income for the year ending 30 June 2019.
Description Change to Vote Deficit Surplus
General Fund Expenses Employee costs 0 130,186 Materials & Contracts 575,008 0 Interest 0 0 Other Operating costs 0 0 Capital 0 2,409,911 Loan Repayments 0 0 Transfers to Reserves 1,570,560 0
2,145,568 2,540,097
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2 of 19 Income Rates and Annual Charges 0 0 Interest revenue 0 0 Operating Grants & Conts 0 208,341 Capital Grants & Conts 0 27,708 User Charges & Fees 51,517 0 Other Operating Revenue 0 252,500 Loan Funds 0 0 Recoupments 0 0 Transfers from Reserves 41,800 0 Asset Sales 789,761 0
883,078 488,549
Net Surplus/(Deficit) 0
Deficit Surplus Sewer Fund Expenses Employee costs 0 0 Materials & Contracts 0 679,181 Interest 0 0 Other Operating costs 0 0 Capital 95,000 0 Loan Repayments 0 0 Transfers to Reserves 644,181 0
739,181 679,181 Income 0 0 Rates and Annual Charges 0 0 Interest revenue 0 0 Operating Grants & Conts 0 0 Capital Grants & Conts 0 0 User Charges & Fees 0 0 Other Operating Revenue 0 0 Loan Funds 0 0 Recoupments 0 37,800 Transfers from Reserves 0 22,200 Asset Sales 0 0
0 60,000
Net Surplus/(Deficit) 0
Water Fund Expenses Employee costs 0 0 Materials & Contracts 0 228,206 Interest 0 0 Other Operating costs 0 0 Capital 0 488,254 Loan Repayments 0 0 Transfers to Reserves 803,954 0
803,954 716,460 Income Rates and Annual Charges 0 0 Interest revenue 0 21,494 Operating Grants & Conts 0 0 Capital Grants & Conts 0 0 User Charges & Fees 0 0 Other Operating Revenue 0 0 Loan Funds 0 0
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Recoupments 0 0 Transfers from Reserves 0 66,000 Asset Sales 0 0
0 87,494
Net Surplus/(Deficit) 0
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REPORT:
Budget Review 31 March 2019 (Quarterly Budget Review) In accordance with section 203(1) of the Local Government (General) Regulation 2005, a Budget Review Statement and revision of the estimates of income and expenditure must be submitted to council within two months of the close of each quarter. The Regulation requires that the quarterly financial review must include the following: • A revised estimate for income and expenditure for the year. • A report as to whether or not such statements indicate that the financial position of the
Council is satisfactory and if the position is unsatisfactory, make recommendations for remedial action.
Report by Responsible Accounting Officer – Quarterly Budget Review Statements The Quarterly Budget Review Reports are prepared to provide Council and the community with information in relation to Council's financial performance and proposed amendments to its budget and forward estimates. The reports are prepared under accrual accounting principles in accordance with the requirements of the Local Government Act 1993. New South Wales councils are required to prepare a Quarterly Budget Review Statement, which includes the following information: • The original budget • Approved changes to the original budget • Recommendations by Council officers regarding changes to the revised budget • A projected year end result • Actual year to date figures • Key Performance Indicators • New contracts entered into during the quarter • Consultancy and legal expenses This information is presented in the following reports: • List of changes which will impact on revenue, i.e. will affect the Operational Plan (budget)
or Long Term Financial Plan • Detailed list of recommended changes, including those recommended by officers and
those adopted by Council • Income and Expenses Statement, consolidated and by fund • Funding Statement, consolidated and by fund, which gives the total budget result • Capital Budget Review Statement • Cash & Investments Budget Review Statement • Budget Review Key Performance Indicators Statement • Budget Review Contracts (part A) and Other Expenses (part B)
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Impacts on the Operational Plan and/or Long Term Financial Plan Some recommended changes will have no net effect on the Operational Plan (1 year budget). Others will have long term effects and will need to be reflected in the next revision of the Long Term Financial Plan. The changes which will have such an effect are listed below: Description $ $
General Fund
Net Effect on
2018/2019 Budget
Net Effect on LTFP
Murwillumbah museum 42,926 42,926 Art Gallery electricity -42,926 -42,926 Community buildings 14,487 14,487 Compliance 28,463 32,150 Records storage facility 5,000 Printing & stationery -19,000 Swimming Pool compliance -28,950 0 46,637
Detailed list of changes
In/Ex Item Category Description Current Vote
Change to Vote Details / Comments
1. Proposed Variations General Fund
Ex 1 Ex-OpOther Murwillumbah Museum recurring costs 79,523 42,926 Revision of Community & Cultural budget Ex 1 Ex-OpOther Art Gallery electricity 186,758 -42,926 Revision of Community & Cultural budget In 2 In-Fees Rents & Sundry Income -17,868 17,868 Revision of Community & Cultural budget In 2 In-Fees Rent - various facilities -2,580 Revision of Community & Cultural budget In 2 In-Fees Rent - Northern Rivers Childrens Service -21,800 -801 Revision of Community & Cultural budget In 3 In-OpOther Infringement Income & Fee - Animal -102,047 37,747 Revision of Compliance budget Ex 4 Ex-Op Environmental Compliance (Building) 122,875 -14,000 Revision of Compliance budget Ex 4 Ex-Op Building Compliance Officer 103,804 14,000 Revision of Compliance budget
Ex 4 Ex-Op Impounding Income & Expenses - Motor Vehicle 2,502 5,539 Revision of Compliance budget
Ex 4 Ex-Op Stott's Island Impounding Facility Income 0 -4,534 Revision of Compliance budget Ex 4 Ex-Op Companion Animal Act Expenses 12,241 700 Revision of Compliance budget Ex 4 Ex-Op Animal Impounding Facility Expenses 71,346 -10,887 Revision of Compliance budget Ex 4 Ex-Op Straying Livestock Expense 1,154 1,046 Revision of Compliance budget Ex 4 Ex-Op Regulatory Legal Expenses 5,767 12,233 Revision of Compliance budget In 4 In-Fees Impounding Income -75,280 11,280 Revision of Compliance budget Ex 4 Ex-Op Ranger Expenses 109,874 7,836 Revision of Compliance budget In 4 In-OpOther Infringement Income & Fee - Parking -70,070 -48,247 Revision of Compliance budget In 4 In-Fees Environmental enforcement levy -99,750 15,750 Revision of Compliance budget Ex 5 Ex-Capital Tweed Heads Cultural Plaza 196,933 15,000 Hearing loops In 5 In-TFR Access reserve -15,000 Funding for above Ex 6 Ex-OpEmp Infrastructure Delivery Salaries 857,917 -48,346 Revision of Infrastructure Delivery Budget Ex 6 Ex-OpEmp Contracts Section 690,603 -33,435 Revision of Infrastructure Delivery Budget
Ex 7 Ex-Capital Capital plant purchases 7,169,957 -
2,561,735 Revision of Fleet Budget
In 7 In-Sales Capital plant sales -
2,210,437 789,761 Revision of Fleet Budget
6 of 19 Ex 7 Ex-Op Fleet administration 382,303 -26,703 Revision of Fleet Budget In 7 In-TFR Fleet reserve -288,052 288,052 Revision of Fleet Budget Ex 7 Ex-TTR Fleet reserve 0 1,570,560 Revision of Fleet Budget Ex 7 Ex-Op Workshop mechanics 419,354 -47,620 Revision of Fleet Budget Ex 7 Ex-Op Workshop metal fabrication 154,957 -12,315 Revision of Fleet Budget Ex 7 Ex-Op Workshop small plant 16,773 6,247 Revision of Fleet Budget Ex 7 Ex-Op Buchanan St residence 20,036 9,000 Revision of Procurement Budget Ex 7 Ex-Capital Depot improvements Tweed Heads 30,884 29,116 Revision of Procurement Budget Ex 7 Ex-OpEmp Storekeeping 390,484 -83,405 Revision of Procurement Budget Ex 7 Ex-Op Non-Inventory Store Issued Items 26,810 7,304 Revision of Procurement Budget Ex 7 Ex-Op Depot Murwillumbah 614,031 -106,554 Revision of Procurement Budget Ex 7 Ex-Op Depot Tweed Heads 271,519 4,935 Revision of Procurement Budget Ex 7 Ex-Capital Depot improvements Murwillumbah 167,670 207,138 Revision of Procurement Budget In 7 In-OpOther Gravel sales & royalties -10,000 8,000 Revision of Procurement Budget Ex 8 Ex-Op Mooball Creek retaining wall 155,000 Single Coastal Reserve expenses Ex 8 Ex-OpEmp Coastal ranger 95,000 Single Coastal Reserve expenses In 8 In-OpOther Crown reserves transfer from TCHP -250,000 Funding for above Ex 9 Ex-Op E Zone review 40,000 Consultancy Ex 9 Ex-OpEmp Strategic Planning 996,750 -40,000 Funding for above Ex 10 Ex-Op Youth Strategy 2,836 2,591 Youth Week activities Ex 10 In-OG&C Family and Community Services -2,591 Funding for above Ex 11 Ex-Op Small Farms Big Changes 59,050 Environmental education project In 11 In-OG&C Environmental Trust -59,050 Funding for above Ex 12 Ex-Capital Pools asset management 58,994 27,708 TRAC LED lights In 12 In-CG&C Australian Sports Commission -27,708 Funding for above
Ex 13 Ex-Capital Lundberg Drive stormwater 80,000 Remediate drainage issue Industry Central
Ex 13 Ex-Op Stormwater drainage rehabilitation 633,205 -80,000 Funding for above Ex 14 Ex-Op Murwillumbah Visitor Information Centre 408,748 91,252 Restoration works In 14 In-TFR Works Carried Forward reserve -91,252 Funding for above
Ex 15 Ex-Op Tweed Aboriginal Cultural Heritage Oral History Project 34,700 Community heritage project
In 15 In-OG&C Office of Environment & Heritage -34,700 Funding for above Ex 16 Ex-Op Road Safety Programs 5,000 Safety Around Schools In 16 In-OG&C Road Safety Grants -5,000 Funding for above Ex 16 Ex-Op Road Safety Programs 5,000 Impaired Road Users In 16 In-OG&C Road Safety Grants -5,000 Funding for above Ex 16 Ex-Op Road Safety Programs 2,000 Bike Week activities In 16 In-OG&C Road Safety Grants -2,000 Funding for above Ex 17 Ex-Op Flood Mitigation lot consolidation 300,000 60,000 Flood mitigation In 17 In-TFR Infrastructure reserve -60,000 Funding for above Ex 18 Ex-Op Condong Creek Stage 3 10,000 Stormwater drainage In 18 In-TFR Infrastructure reserve -10,000 Funding for above Ex 19 Ex-Op Dulguigan Road Road Safety Design 50,000 Road safety In 19 In-TFR Infrastructure reserve -50,000 Funding for above Ex 20 Ex-Op Tiny homes 20,000 Tiny Home Village proposal In 20 In-TFR Land Development Reserve -20,000 Funding for above Ex 21 Ex-Op Records storage facility 134,490 5,000 Security doors Ex 22 Ex-Op Printing & stationery 122,058 -19,000 Revision of budget Ex 23 Ex-OpEmp Swimming Pool compliance 141,859 -20,000 Revision of Building & Env. Health budget In 23 In-Fees Swimming Pool certificate fees -76,727 10,000 Revision of Building & Env. Health budget In 23 In-Fees On-Site Sewage pre-purchase fees -23,100 10,000 Revision of Building & Env. Health budget In 23 In-Fees On-Site Sewage new install inspections -42,000 -10,000 Revision of Building & Env. Health budget Ex 23 Ex-Op Environmental Health 110,138 -18,950 Revision of Building & Env. Health budget
0 Sewer Fund
Ex 24 Ex-Op Operations -619,048 Various revisions In 24 Ex-Op Annual charges -60,133 Various revisions Ex 24 In-Interest Interest received No adjustments this quarter
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In 24 In-Fees Fees No adjustments this quarter In 24 In-CG&C s64 income No adjustments this quarter Ex 24 In-CG&C Capital grants No adjustments this quarter Ex 24 Ex-Capital Capital works 95,000 New minor projects In 24 In-TFR Transfers from reserves -22,200 Funding adjustments In 24 In-Recoup Recoupment from s64 -37,800 Funding adjustments
24 Ex-TTR s64 reversal No adjustments this quarter Ex 24 Ex-TTR Transfers to reserves 644,181 Funding adjustments
0 Water Fund
Ex 25 Ex-Op Operations -216,447 Various revisions In 25 Ex-Op Annual charges -11,759 Various revisions Ex 25 In-Interest Interest received -21,494 Funding adjustments In 25 In-Fees Fees No adjustments this quarter In 25 In-CG&C s64 income No adjustments this quarter Ex 25 In-CG&C Capital grants No adjustments this quarter Ex 25 Ex-Capital Capital works -488,254 Deferrals and revisions In 25 In-TFR Transfers from reserves -66,000 Funding adjustments In 25 In-Recoup Recoupment from s64 No adjustments this quarter
25 Ex-TTR s64 reversal No adjustments this quarter Ex 25 Ex-TTR Transfers to reserves 803,954 Funding adjustments
0 2. Variations Arising from Council Resolutions
Ex 26 Ex-Op Tweed Coastal Management Program 150,000 Resolution 25 October 2018 Item 25 In 26 In-OG&C Office of Environment and Heritage -100,000 Resolution 25 October 2018 Item 25 Ex 26 Ex-Op Tweed Coastal Zone Management 96,390 -50,000 Resolution 25 October 2018 Item 25
0 Summary of Votes by Type 2018/19 Variations 0 Council Resolutions 0 0 Key to Category codes Ex-OpEmp Employee costs Ex-Op Materials & contracts Ex-Interest Interest on loans Ex-OpOther Other operating expenses Ex-Capital Capital works
Ex-Loan Reps Repayment on principal on loans
Ex-TTR Transfers to reserves Ex-Dep Depreciation Ex-Deprev Depreciation reversal In-Rates Rates & annual charges In-Interest Interest income In-OG&C Operating grants & contributions In-CG&C Capital grants & contributions In-Fees User charges & fees In-OpOther Other operating income In-Loan Loan funds In-Recoup Recoupment from s64 & s94 funds In-TFR Transfers from reserves In-Sales Proceeds from sale of assets Expenses
8 of 19 Employee costs -130,186 Materials & Contracts -539,517 Interest 0 Other Operating costs 0
Capital -
2,596,027 Loan Repayments 0 Transfers to Reserves 3,018,695 -247,035 Income Rates and Annual Charges 0 Interest revenue -21,494 Operating Grants & Conts -208,341 Capital Grants & Conts -27,708 User Charges & Fees 51,517 Other Operating Revenue -252,500 Loan Funds 0 Recoupments -37,800
Transfers from Reserves -46,400 Asset Sales 789,761 247,035 Net 0 Summary of Votes - by Division Corporate Services -14,000 Planning & Regulation -487 Community & Natural Resources 14,487 Engineering 0 General Manager 0 0
Results by fund: General Fund The General Fund is expected to remain as a “balanced budget”. Water Fund The Water Fund is expected to remain as a “balanced budget”. Sewer Fund The Sewer Fund is expected to remain as a “balanced budget”. Quarterly Budget Review Statements Income and Expense - Consolidated Budget Review Statement for the quarter ended 31 March 2019
Recommended Projected Original Previously approved changes year end Budget Sep Dec Revised for Council result Actual Review Review Budget Resolution YTD
(000's) (000's)
* (000's) (000's) (000's) (000's) (000's)
Income
Rates and Annual Charges
111,135 -
(72)
111,063 -
111,063
83,212
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User Charges and Fees
46,920
73
(17)
46,976
(52)
46,924
37,209
Interest and Investment Revenue
9,821
31
(86)
9,766
21
9,787
7,715
Other Revenues
2,955 -
69
3,024
253
3,277
4,857
Grants & Contributions - Operating
17,123
(136)
5,133
22,120
208
22,328
22,660
Grants and Contributions - Capital
1,017
6,806
62
7,885
28
7,913
3,796
- Contributions (S94)
16,732
58
(11,959)
4,831 -
4,831
6,016
Net gain from the disposal of assets - - - - - - -
Total Income
205,703
6,832
(6,870)
205,665
458
206,123
165,465
Expense
Employee costs
57,916
393
30
58,339
(130)
58,209
42,167
Borrowing Costs
11,666 - -
11,666 -
11,666
7,535
Materials & Contracts
46,739
15,488
4,736
66,963
(541)
66,422
34,682
Depreciation
42,623 - -
42,623 -
42,623
31,968
Legal Costs
476
363 -
839 -
839
653
Consultants
492 - -
492 -
492
133
Other Expenses
16,931
(150) -
16,781 -
16,781
10,389
Net Loss from Disposal of Assets - - - - - -
183
Total Expenses
176,843
16,094
4,766
197,703
(671)
197,032
127,710
Net Operating Result
28,860
(9,262)
(11,636)
7,962
1,129
9,091
37,755
Net Operating Result before capital items
11,111
(16,126)
261
(4,754)
1,101
(3,653)
27,943
Funding Statement - Consolidated - Source & Application of Funds
Operating Result (Income Statement)
28,860
(9,262)
(11,636)
7,962
1,129
9,091
Add Back non-funded items:
Depreciation
42,623 - -
42,623 -
42,623
- - - - -
Add non-operating funding sources - - - - - Transfers from Externally Restricted Cash
25,659
3,961
1,237
30,857
38
30,895
Transfers from Internally Restricted Cash
3,499
53,996
(2,680)
54,815
46
54,861
Proceeds from sale of assets
2,210 - -
2,210
(790)
1,420
Loan Funds Utilised
3,066
1,153 -
4,219 -
4,219
Repayments from Deferred Debtors - - - - - -
Funds Available
105,917
49,848
(13,079)
142,686
423
143,109
Funds were applied to:
Purchase and construction of assets
45,771
50,076
(2,302)
93,545
(2,596)
90,949
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Repayment of principal on loans
8,838 - -
8,838 -
8,838
Transfers to Externally Restricted Cash
47,590 - -
47,590 -
47,590
Transfers to Internally Restricted Cash
3,718
(228)
(10,777)
(7,287)
3,019
(4,268)
Funds Used
105,917
49,848
(13,079)
142,686
423
143,109
Increase/(Decrease) in Available Working Capital - - - - - -
* Includes Carried Forward Works revotes Income & Expense- General Fund Budget Review Statement for the quarter ended 31 March 2019
Recommended Projected
Original Previously approved changes year end Budget Sep Dec Revised for Council result Actual Review Review Budget Resolution YTD
(000's) (000's)
* (000's) (000's) (000's) (000's) (000's)
Income
Rates and Annual Charges
74,731 -
74,731 -
74,731
56,615
User Charges and Fees
19,177
73
(15)
19,235
(52)
19,183
15,862
Interest and Investment Revenue
5,243 - -
5,243 -
5,243
4,461
Other Revenues
2,624 -
69
2,693
253
2,946
4,292
Grants & Contributions - Operating
16,209
(136)
5,133
21,206
208
21,414
21,781
Grants and Contributions - Capital
1,017
6,806
62
7,885
28
7,913
3,796
- Contributions (S64/S94)
1,856
1,856
1,856
3,508
Net gain from the disposal of assets - - -
Total Income
120,857
6,743
5,249
132,849
437
133,286
110,315
Expense
Employee costs
45,838
393
30
46,261
(130)
46,131
33,050
Borrowing Costs
5,393 - -
5,393 -
5,393
3,323
Materials & Contracts
25,620
14,706
4,669
44,995
367
45,362
27,717
Depreciation
24,978
24,978
24,978
18,734
Legal Costs
476
363
839
839
650
Consultants
94
94
94
116
Other Expenses
12,708
(150)
12,558 -
12,558
8,145
Net Loss from Disposal of Assets - -
170
Total Expenses
115,107
15,312
4,699
135,118
237
135,355
91,905
Net Operating Result
5,750
(8,569)
550
(2,269)
200
(2,069)
18,410
Net Operating Result before capital items
2,877
(15,375)
488
(12,010)
172
(11,838)
11,106
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Funding Statement - General Fund - Source & Application of Funds
Operating Result (Income Statement)
5,750
(8,569)
550
(2,269)
200
(2,069)
Add Back non-funded items:
Depreciation
24,978
24,978 -
24,978
Add non-operating funding sources Transfers from Externally Restricted Cash
1,554
1,553
3,107 -
3,107
Transfers from Internally Restricted Cash
3,499
51,876
1,377
56,752
(42)
56,710
Proceeds from sale of assets
2,210 -
2,210
(790)
1,420
Loan Funds Utilised
3,066
1,153
4,219 -
4,219
Internal charges - -
Repayments from Deferred Debtors - -
Funds Available
41,057
46,013
1,927
88,997
(632)
88,365
Funds were applied to:
Purchase and construction of assets
25,543
45,488
1,891
72,922
(2,203)
70,719
Repayment of principal on loans
4,419 - -
4,419 -
4,419
Transfers to Externally Restricted Cash
7,377
7,377
7,377
Transfers to Internally Restricted Cash
3,718
525
36
4,279
1,571
5,850
Funds Used
41,057
46,013
1,927
88,997
(632)
88,365
Increase/(Decrease) in Available Working Capital - - - - - -
* Includes Carried Forward Works revotes Income & Expense- Sewer Fund Budget Review Statement for the quarter ended 31 March 2019
Recommended Projected
Original Previously approved changes year end Budget Sep Dec Revised for Council result Actual Review Review Budget Resolution YTD (000's) (000's) (000's) (000's) (000's) (000's) (000's)
Income
Rates and Annual Charges
30,680
(60)
30,620 -
30,620
22,159
User Charges and Fees
3,389
(14)
3,375 -
3,375
2,666
Interest and Investment Revenue
2,687
65 -
2,752 -
2,752
2,060
Other Revenues
17 -
17 -
17
2
Grants & Contributions - Operating
505 -
505 -
505
508
Grants and Contributions - Capital - -
- Contributions (S64/S94)
4,877
(3,902)
975 -
975
929
Net gain from the disposal of assets - -
Total Income
42,155
65
(3,976)
38,244 -
38,244
28,324
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Expense
Employee costs
7,381
7,381 -
7,381
5,375
Borrowing Costs
2,030
2,030 -
2,030
1,028
Materials & Contracts
10,268
613
477
11,358
(679)
10,679
3,489
Depreciation
10,196
10,196 -
10,196
7,647
Legal Costs - - -
Consultants
158
158 -
158
7
Other Expenses
2,761
2,761 -
2,761
1,274
Net Loss from Disposal of Assets - -
13
Total Expenses
32,794
613
477
33,884
(679)
33,205
18,833
Net Operating Result
9,361
(548)
(4,453)
4,360
679
5,039
9,491
Net Operating Result before capital items
4,484
(548)
(551)
3,385
679
4,064
8,562
Funding Statement - Sewer Fund - Source & Application of Funds
Operating Result (Income Statement)
9,361
(548)
(4,453)
4,360
679
5,039
Add Back non-funded items:
Depreciation
10,196 - -
10,196 -
10,196
Add non-operating funding sources Transfers from Externally Restricted Cash
8,631
216
(3)
8,844
38
8,882
Transfers from Internally Restricted Cash
1,485
162
1,647
22
1,669
Proceeds from sale of assets - - -
Loan Funds Utilised - - -
Repayments from Deferred Debtors - -
Funds Available
28,188
1,153
(4,294)
25,047
739
25,786
Funds were applied to:
Purchase and construction of assets
5,933
1,566
191
7,690
95
7,785
Repayment of principal on loans
2,867 - -
2,867 -
2,867
Transfers to Externally Restricted Cash
19,388 - -
19,388 -
19,388
Transfers to Internally Restricted Cash
(413)
(4,485)
(4,898)
644
(4,254)
Internal charges - -
Funds Used
28,188
1,153
(4,294)
25,047
739
25,786
Increase/(Decrease) in Available Working Capital - - - - - -
Income & Expense- Water Fund Budget Review Statement for the quarter ended 31 March 2019
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Recommended Projected
Original Previously approved changes year end Budget Sep Dec Revised for Council result Actual Review Review Budget Resolution YTD (000's) (000's) (000's) (000's) (000's) (000's) (000's)
Income
Rates and Annual Charges
5,724
(12)
5,712 -
5,712
4,438
User Charges and Fees
24,354
12
24,366 -
24,366
18,681
Interest and Investment Revenue
1,891
(34)
(86)
1,771
21
1,792
1,194
Other Revenues
314 - -
314 -
314
563
Grants & Contributions - Operating
409 - -
409 -
409
371
Grants and Contributions - Capital - - -
- Contributions (S64/S94)
9,999
58
(8,057)
2,000 -
2,000
1,579
Net gain from the disposal of assets - -
Total Income
42,691
24
(8,143)
34,572
21
34,593
26,826
Expense
Employee costs
4,697
4,697 -
4,697
3,742
Borrowing Costs
4,243
4,243 -
4,243
3,184
Materials & Contracts
10,851
169
(410)
10,610
(229)
10,381
3,476
Depreciation
7,449
7,449 -
7,449
5,587
Legal Costs - - -
3
Consultants
240
240 -
240
10
Other Expenses
1,462
1,462 -
1,462
970
Net Loss from Disposal of Assets - -
Total Expenses
28,942
169
(410)
28,701
(229)
28,472
16,972
Net Operating Result
13,749
(145)
(7,733)
5,871
250
6,121
9,854
Net Operating Result before capital items
3,750
(203)
324
3,871
250
4,121
8,275
Funding Statement - Water Fund - Source & Application of Funds
Operating Result (Income Statement)
13,749
(145)
(7,733)
5,871
250
6,121
Add Back non-funded items:
Depreciation
7,449 - -
7,449 -
7,449
Add non-operating funding sources Transfers from Externally Restricted Cash
15,474
2,192
1,240
18,906 -
18,906
Transfers from Internally Restricted Cash
635
(4,219)
(3,584)
66
(3,518)
Proceeds from sale of assets - -
Loan Funds Utilised - - -
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Repayments from Deferred Debtors - -
Funds Available
36,672
2,682
(10,712)
28,642
316
28,958
Funds were applied to:
Purchase and construction of assets
14,295
3,022
(4,384)
12,933
(488)
12,445
Repayment of principal on loans
1,552 - -
1,552 -
1,552
Transfers to Externally Restricted Cash
20,825 - -
20,825 -
20,825
Transfers to Internally Restricted Cash
(340)
(6,328)
(6,668)
804
(5,864)
Internal charges - -
Funds Used
36,672
2,682
(10,712)
28,642
316
28,958
Increase/(Decrease) in Available Working Capital - - - - - -
This document forms part of Tweed Shire Council's Quarterly Budget Review Statement for the quarter ended 31 March 2019 and should be read in conjunction with other documents in the QBRS. Capital Budget Review Statement - Consolidated - for the quarter ended 31 March 2019 Recommended Projected
Original Previously approved changes year end Budget Sep Dec Revised for Council result Actual Review Review Budget Resolution YTD (000's) (000's) * (000's) (000's) (000's) (000's) (000's)
Capital Funding ** Rates and other untied funding 31,961 625 683 33,269 (1,456) 31,813 12,859
Capital Grants & Contributions 928 6,863 7,791 28 7,819 3,161
Internal Restrictions (Reserves) 1,987 25,769 1,209 28,965 15 28,980 11,715
External Restrictions 12,366 13,567 (4,192) 21,741 (393) 21,348 8,630
- s64 & s94 funds 2,205 2,600 4,805 4,805 1,942
Other Capital Funding Sources
- loans 3,066 652 3,718 3,718 1,503
Income from sale of assets (790) (790)
- plant and equipment 2,210 2,210 2,210 893 - Land,Buildings,Furniture,Fittings
Total Capital Funding 54,723 50,076 (2,300) 102,499 (2,596) 99,903 40,703
Capital Expenditure New Assets - Plant and Equipment 230 106 336 336 308 - Land,Buildings,Furniture,Fittings 3,939 15,799 683 20,421 15 20,436 8,339
- Roads, Bridges, Footpaths 20 6,748 460 7,228 7,228 893
- Drainage 12
- Water & Sewer Infrastructure 7,016 2,504 (3,288) 6,232 (494) 5,738 2,485
- Other 3,200 9,836 13,036 13,036 300
Renewals (Replacement)
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- Plant and Equipment 7,170 7,170 (2,562) 4,608 1,489 - Land,Buildings,Furniture,Fittings 101 219 320 320 357
- Roads, Bridges, Footpaths 11,338 4,288 749 16,375 16,375 10,539
- Drainage 644 134 778 80 858 24
- Water & Sewer Infrastructure 6,845 1,673 52 8,570 166 8,736 3,161
- Other 2,544 2,544 2,544 1,544
Upgrades
- Plant and Equipment 9 - Land,Buildings,Furniture,Fittings 2,227 2,227 264 2,491 1,130
- Roads, Bridges, Footpaths 630 2,761 3,391 3,391 2,140
- Drainage 800 772 1,572 1,572 892
- Water & Sewer Infrastructure 3,952 411 (956) 3,407 (65) 3,342 1,443
- Other 54 54 54 83
Loan Repayments (principal) 8,838 8,838 8,838 5,236
Total Capital Expenditure 54,723 50,076 (2,300) 102,499 (2,596) 99,903 40,384 This document forms part of Tweed Shire Council's Quarterly Budget Review Statement for the quarter ended 31 March 2019 and should be read in conjunction with other documents in the QBRS. * Note: Includes Carry over works * *Note: figures in the Actual YTD column of capital funding are estimates only. Detailed
calculations of funding results are performed annually. Cash and Investments Budget Review Statement for the quarter ended 31 March 2019
Recommended Projected
Original Previously approved changes year end
Budget Sep Dec Revised for Council result Actual *
Review Review Budget Resolution YTD
(000's) (000's) (000's) (000's) (000's) (000's) (000's)
Unrestricted 7,814 7,814 7,814 12,661
Externally restricted
Developer contributions 40,632 (3,961) 36,671 (38) 36,633 43,030
Domestic waste management 20,659 (11,387) 9,272 9,272 20,000
Special Rates 224 224 224 247 Unexpended grants & contributions 6,019 (6,019) 0 0 6,000
Water Supplies 75,087 75,087 75,087 61,172
Sewerage Services 100,861 100,861 100,861 100,605
Other 17,396 17,396 17,396 17,000
Total Externally restricted 260,878 (21,367) 0 239,511 (38) 239,473 248,054
Internally restricted
Employee Leave entitlements 13,554 13,554 13,554 13,554
Unexpended untied grants 1,501 (1,501) 0 0 1,500
Unexpended loans 3,091 (1,968) 1,123 1,123 3,000
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7 Year Plan 2,445 (2,282) 163 163 2,400
Works Carried Forward 8,508 (7,070) 1,438 (91) 1,347 8,000 Replacement of Plant and Vehicles 5,456 5,456 1,858 7,314 5,000
Tip improvements 14,545 (7,625) 6,920 6,920 14,000
Asset renewals 28,534 (6,163) 22,371 (120) 22,251 28,000
Other 8,844 8,844 (20) 8,824 8,000
Total Internally restricted 86,478 (26,609) 0 59,869 1,627 61,496 83,454
Total Restricted 347,356 (47,976) 0 299,380 1,589 300,969 331,508
Total cash and investments 355,170 (47,976) 0 307,194 1,589 308,783 344,169
Available cash 7,814 0 0 7,814 0 7,814 12,661 * Note: figures in the Actual YTD are estimates only. Detailed calculations of funding results and cash restrictions are performed annually. The available cash position excludes restricted funds. External restrictions are funds that must be spent for a specific purpose and cannot be used by council for general operations. Internal restrictions are funds that council has determined will be used for a specific purpose. Statement of compliance with investment policy: Council's investments have been made in accordance with Council's investment policies. Reconciliation of restricted funds with current investment report:
(000's)
Total restricted funds 331,508
Total invested funds as per March Investment Report 341,898
Note, some restricted funds are held as cash as they will be utilised in the current period. Statement of bank reconciliation: Cash has been reconciled with the bank statement. Bank reconciliations are up to date. Reconciliation of cash and investments:
(000's)
Cash and investments as per above 344,169
Cash on hand and at bank 2,271
Investments 341,898
344,169 This document forms part of Tweed Shire Council's Quarterly Budget Review Statement for the quarter ended 31 March 2019 and should be read in conjunction with other documents in the QBRS.
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Key Performance Indicators Budget Review Statement for the quarter ended 31 March 2019 Note that KPIs may be distorted by the fact that detailed calculations are only prepared on an annual basis. These ratios should therefore be viewed with caution.
Amounts Indicator 1. Unrestricted Current Ratio (000's) Current assets less all external restrictions 74,058 2.7:1 Current liabilities 27,754 Target: 2:1
Purpose: To assess the adequacy of working capital and its ability to satisfy obligations in the short term for the unrestricted activities of Council.
Amounts Indicator 2. Debt Service Ratio (000's) Debt Service Cost 12,771 9.26% Selected operating income 137,866 Target: 15%
Purpose: To assess the impact of loan principal and interest repayments on the discretionary revenue of Council. This document forms part of Tweed Shire Council's Quarterly Budget Review Statement for the quarter ended 31 March 2019 and should be read in conjunction with other documents in the QBRS. Budget Review Contracts and Other Expenses for the quarter ended 31 March 2019
PART A-Contracts Listing
Contractor Contract Title Contract Value
$ Award Date
Duration of Contract
Budgeted (Y/N)
Rod Smith Builder Marine Parade Footpath Maintenance $86,700.00 22-Mar-19 8 Weeks Y
PT Automation Solutions Manufacture and Supply of Switchboard for SPS2033 $87,760.00 25-Mar-19 12 Weeks Y
Desire Contractors Pty Ltd Landscape Works for Eunga Street Playground $67,075.00 07-Mar-19 12 Weeks Y
Stabilised Pavements of Australia Boyd St Insitu Stabilisation Program $313,836.07 21-Mar-19 4 Weeks Y
Arcadis (76 104 485 289) Detailed Concept Design of Broadwater Parkway, Terranora $179,000.00 12-Mar-19 5 Months Y
HME Services Pty Ltd Tweed Heads Auditorium- Cabling and Lighting Upgrade $184,738.00 17-Jan-19 5 Weeks Y
East Coast Asphalt and Concrete Edging Pty Lyt
Supply, Lay & Compact AC Terranora Rd, Terranora $205,293.00 11-Feb-19 8 Weeks Y
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Concept Engineering Services Design and Construct Electrical Switchboard Uki Water Treatment Plant $169,128.02 08-Feb-19 12 Weeks Y
PART B - Consultancy and Legal expenses Expenditure Budgeted
Expense YTD $ (Y/N) Consultancies
212,842 Y
Legal expenses
647,687 Y This document forms part of Tweed Shire Council's Quarterly Budget Review Statement for the quarter ended 31 March 2019 and should be read in conjunction with other documents in the QBRS.
Statutory Statement – Local Government (General) Regulations 2005 (Sections 202 & 203) by “Responsible Accounting Officer”
202 Responsible accounting officer to maintain system for budgetary control The responsible accounting officer of a council must: (a) establish and maintain a system of budgetary control that will enable the
council’s actual income and expenditure to be monitored each month and to be compared with the estimate of the council’s income and expenditure, and
(b) if any instance arises where the actual income or expenditure of the council is materially different from its estimated income or expenditure, report the instance to the next meeting of the council.
203 Budget review statements and revision of estimates (1) Not later than 2 months after the end of each quarter (except the June quarter),
the responsible accounting officer of a council must prepare and submit to the council a budget review statement that shows, by reference to the estimate of income and expenditure set out in the Statement of the council's revenue policy included in the operational plan for the relevant year, a revised estimate of the income and expenditure for that year.
(2) A budget review statement must include or be accompanied by: (a) a report as to whether or not the responsible accounting officer believes
that the statement indicates that the financial position of the council is satisfactory, having regard to the original estimate of income and expenditure, and
(b) if that position is unsatisfactory, recommendations for remedial action. (3) A budget review statement must also include any information required by the
Code to be included in such a statement. Statutory Statement It is my opinion that the Quarterly Budget Review Statement for Tweed Shire Council for the quarter ended 31 March 2019 indicates that Council’s projected financial position at 30 June 2019 will be satisfactory at year end, having regard to the projected estimates of income and expenditure and the original budgeted income and expenditure.
M A Chorlton 3 May 2019 “Responsible Accounting Officer” Executive Manager Finance, Revenue and Information Technology
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Tweed Shire Council OPTIONS: Not Applicable CONCLUSION: Refer to Statutory Statement above COUNCIL IMPLICATIONS: a. Policy: Not Applicable b. Budget/Long Term Financial Plan: As detailed within the report. c. Legal: Not Applicable. d. Communication/Engagement: Inform - We will keep you informed. UNDER SEPARATE COVER/FURTHER INFORMATION:
Nil.